Question

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014:


Accounts payable $ 18,000
Accounts receivable 11,000
Accumulated depreciation – equipment 28,000
Advertising expense 21,000
Cash 15,000
Owner’s capital (1/1/14) 102,000
Owner’s drawings 14,000
Depreciation expense 12,000
Insurance expense 3,000
Note payable, due 6/30/15 70,000
Prepaid insurance (12-month policy) 6,000
Rent expense 17,000
Salaries and wages expense 32,000
Service revenue 133,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000

Answer 1

What is the total liabilities of the Postal Service as of December 31, 2014?

The total liabilities of the Postal Service as of December 31, 2014 is $98,000 ($18,000 + $11,000 + $70,000).